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Is IT losing its relevance?

By | September 8, 2010, 8:31pm PDT

Summary: Technology consultant warns: today’s new companies can be built without hiring a single IT employee.

Eric Brown pondered what information technology would look like in a new organization built from scratch, today. “What if you could build your organization from scratch.  No legacy systems.  No sacred cows. What would the IT group look like?”

Technology consultant warns: today’s new companies don’t really need IT.

Eric, a technology consultant, looks at a hypothetical services company with 500 employees, with a customer base across North America.

Eric would take either of two approaches to handling IT. The first is  to outsource everything to service providers, presumably including cloud services. “I do think a company could easily outsource most of their IT infrastructure…if not all of it,” he says.

The other approach is to let employees bring their own computers or devices to the workplace — a self-managed approach to IT.

Either way, he says, the company starts up without a formal IT department, and without hiring a single IT employee.

Eric intends his scenario to be more of a warning to IT professionals than a certain fate. “I think there will always be some form of IT but the status of the IT group (and the CIO) will change if we keep going down the road we’ve been traveling on for the last umpteen years,” he says. In many organizations, IT is seen as standing in the way of progress. “The history of unfinished & unsuccessful projects is leading to a dead-end for most IT groups.”

IT needs to re-evaluate and re-energize its role in tomorrow’s emerging organizations, Eric advises:

“Start looking at bringing humanity back to IT.  Focus on your people, their skills and the human side of IT and start focusing on what those people can do for the organization. Do this and you might have a chance in the future.  Don’t do it and you’ll find yourself stuck in yesterday.”

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Topics

Joe McKendrick is an author, consultant and speaker specializing in trends and developments shaping the technology industry.

Disclosure

Joe McKendrick

Joe McKendrick is an independent consultant, editor and speaker.

Joe has performed project work (white papers, articles, blogs, research and presentations) for the following companies in the IT marketspace:

  • CBS Interactive/CNET/ZDNet (this blog)
  • ebizQ
  • Evans Data
  • Gartner
  • IBM
  • Informatica
  • IDC
  • Microsoft
  • Systinet/HP
  • Teradata
  • Unisphere Reseach, a division of Information Today, Inc.
  • WebLayers

Joe has also performed research work for the following sponsoring organizations in partnership with Unisphere Research, a division of Information Today, Inc.

  • IBM
  • Luminex
  • Noetix
  • Oracle Corp.
  • Teradata
  • Informatica
  • International Oracle Users Group
  • Oracle Applications Users Group
  • Professional Association for SQL Server
  • International DB2 Users Group
  • International Sybase Users Group
  • SHARE (IBM large systems users group)

Biography

Joe McKendrick

Joe McKendrick is an author and independent analyst who tracks the impact of information technology on management and markets. Joe is co-author, along with 16 leading industry leaders and thinkers, of the SOA Manifesto, which outlines the values and guiding principles of service orientation. He also speaks frequently on Enterprise 2.0 and SOA topics at industry events and Webcasts, and serves on the program committee for this year's SOA & Cloud Symposium in London. As an independent analyst, he has also authored numerous research reports in partnership with Unisphere Research, a division of Information Today, Inc. for user groups such as SHARE, Oracle Applications Users Group, and International DB2 Users Group. In a previous life, Joe served as director of the Administrative Management Society (AMS), an international professional association dedicated to advancing knowledge within the IT and business management fields. He is a graduate of Temple University.

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RE: Is IT losing its relevance?
richphx 16th Sep 2010
Is this guy on drugs or what?
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RE: Is IT losing its relevance?
prdmarican Updated - 8th Sep 2010
I have a great idea... maybe this next Friday, all of us irrelevant IT workers should just shut all of our equipment off and take a three day weekend... and see how relevant we all seem on Monday when none of us are there...

Outsourcing IT doesn't make anything less relevant, it only shifts the work to another location - either to a company that will cost you lots more, or one that employs folks in some far away land that make $2 a day in wages. And while some things may make sense to move to the "cloud", nobody wants the wait or the expense of having to call an outsider in for routine IT work.

And the same folks that think that "IT" is standing in the way of progress (please - what other group of folks love technology and gadgets more than us?) are the same ones who cry foul whenever some new virus or trojan takes over their office - yeah, the one's that they refused to be under the IT standards, because they know more than the IT department.

I've been in this business over 30 years now. Outsourcing may solve some problems, but it brings with it just as many if not more.

Choose wisely.
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RE: Is IT losing its relevance?
bobjones2007 10th Sep 2010
@prdmarican 3-day weekend, w00t! But won't all the reaffic lights and elevators stop working? rofl
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RE: Is IT losing its relevance?
mrlinux 9th Sep 2010
Well I have been @ companies that have had actual proposal to replace the IT group, in order to realize any savings from the effort it would take @ least 7 years before the savings started.
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RE: Is IT losing its relevance?
mrlinux 9th Sep 2010
What would you expect from a consultant, he wants more work, so I understand his statement, I do not agree with it.

"Technology consultant warns: today?s new companies don?t really need IT."
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I don't see warning, I see opportunity:
SonofaSailor 9th Sep 2010
Yesterday's new company that "didn't really need IT", today needs a consultant to come in and fix their IT.

And since the company wanted to self manage or outsource, instead of hire a dedicated staffer at $30/hour, the company now has to pay consultant rates of $60 - $80/hour.

Maybe the consumerization of IT is not such a bad thing after all.
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RE: Is IT losing its relevance?
lhAdmin 9th Sep 2010
The same people stating an internal IT is no longer needed are the same who touted "paperless office". Sure many documents are available online but that did NOT lead to a paperless office.

I'm sure the average office worker would love to have someone walk them through removing spyware from their pc (over the phone). Sounds like a very productive day.
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RE: Is IT losing its relevance?
scoleman@... 9th Sep 2010
Startup with no IT employees due to outsourcing. The IT jobs still exist, just with the contract vendor. It would be interesting to have all your data and applications at the mercy of others...especially with how hackable everything is these days.
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The President wants his iPhone or other toy to work with the calendar, and now!
There are as many regulations on data security, backups, etc as there are industries. Will your cloud provider be bonded in case or data loss, and more importantly the value of your business after it is learned you had a data leak.
I could go on and on but the answer is somewhere in the middle. it's just more dribble from someone that has too much time on their hands and not enough paying clients.
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RE: Is IT losing its relevance?
Imprecator 9th Sep 2010
IT Losing its relevance? you make it sound like it had some relevance in the first place.

IT has ALWAYS been considered a cost center and a burden for the business, so how now it's losing any more relevance?

Sure outsource the lot, even better, put it in the cloud. Just don't whine when something like the Danger/Microsoft/T-Mobile disaster comes along and you're left without your data and apps for a month.

"Self Managed" Approach to IT? excuse me while I laugh. I don't care how much pundits flaunt about "Digital Natives" Playing around with P2P, IMs and netbooks is one thing. MANAGING INFORMATION TECHNOLOGY is quite another. Just put one of those to set up and run even a small Data Center (and let's not even talk about something more complicated than 8 workstations in a switch). Then sit and wait for the thing to fall apart.

For the last two days a consultant and my boss have been pestering me because one of our ERPs was too slow.

After checking the innumerable layers of devices and software that make the thing. (workstation, Web Server, App Server Database and their respective OSs) I found that she managed to make a query that had TWO CARTESIAN PRODUCTS ON AN OLTP RDBMS.

Sure go ahead, just don't whine when someone dumps a bill on your lap for the cost of fixing the mess that you caused in the first place
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RE: Is IT losing its relevance?
ZeroSignal 10th Sep 2010
@Imprecator But when things slow down or they run low on drive space they could always just pick up another hard drive from Costco and slap it into the server themselves; couldn't they?
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RE: Is IT losing its relevance?
Imprecator 14th Sep 2010
@ZeroSignal

Yes they could, and then they'll have to call an idiot like me, who will have to spend a whole day fixing the mess and then they will complain cause it costs too much.

And By the way, Mr. Brown could read ZD Net more often, specially after I found this pearl:

http://www.zdnet.com/blog/igeneration/generation-y-technology-wasters-spendthrifts-and-abusers/2607?tag=mantle_skin;content
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What would happen with no IT?
kevintblack 9th Sep 2010
Chaos would ensue! Trust me. I inherit crappy, user-built systems all the time because someone 'could do it themselves'. I get to fix them and make them compliant while the guy who built it goes off and creates more crap.
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RE: Is IT losing its relevance?
markomd 9th Sep 2010
For those of us who are 100% Macintosh, IT lost its relevance long ago. My medical practice and my home have been 100% Macintosh for twenty five years. Other than an occasional telephone call to Apple Service, or an even rarer trip to the local Apple Store for a minor hardware problem, I have never used IT for anything. I do it all myself and have become skillful enough that other people call me for Maciontosh IT questions.
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RE: Is IT losing its relevance?
Imprecator Updated - 9th Sep 2010
@markomd

I'll believe that when I see a company with a Network of 500 Macintosh workstations, plus all the servers, networking infrastructure and storage systems to handle the core business apps without an IT department.
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I started to respond to his post...
SonofaSailor 9th Sep 2010
@Imprecator

But his post pretty much speaks for itself:

The fact that his environment is homogenous (especially being Macintosh), indicates the scale

No mention of routers, firewall, switches, printers...are they 100% Macintosh? And those first 3 components make up the majority of real IT. (Or am I missing something... and a Best Buy bought Linksys router now constitutes a legit firewall, router, and DHCP server?) What about security audits? Being a medical practice, isn't there some regulatory agency interested in best practices for network and patient information security?

Or, are his "medical practice" patient records safe because Apple said in their commercials that Macs don't have to worry about viruses?
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RE: Is IT losing its relevance?
prdmarican 9th Sep 2010
@Imprecator

I ditto your statement. We have nearly 20,000 network machines where I am employed, of which 2/3's are Macintosh. Mac's have every bit as many issues as "pc's", maybe more.

The statement made by markomd really illustrates part of the problem - "Hey, I do it at home, so how hard could it be?". So many just don't understand the intricacies, or the talent it takes to make is seem so transparent when you are working on enterprise sized implementations.

Many management teams are penny-wise and pound-foolish. "Save a couple of bucks now and make myself look good, then let the next guy in charge face the real issues that I created."

Go ahead, outsource you IT teams. You are going to hurt yourselves more than the IT folks. A good IT person is always in demand...
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RE: Is IT losing its relevance?
glenntaylor@... 9th Sep 2010
That's interesting. Perhaps your example might work for small companies with a limited need but there would be a threshold where you would either have to formally insource or outsource.

I may be in for a beating but to this day I cannot imagine what would possess an organisation to outsource - particularly one that needed an agile IT infrastructure.

The reason I say that is that outsourcing places SLAs on outsource companies and the a-number-one way to break those SLA's is to make (even controlled) change to your IT environment.

Thus, companies managing your outsourced environment are fundamentally positioned to oppose change - which strangles the companies ability to have an agile computing environment.

Flame away happy
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RE: Is IT losing its relevance?
jkohut 9th Sep 2010
I would LOVE to see what kind of havoc was created with Enterprise applications in a "bring your own computer from home" 500 user company ! Not sure that Eric has ANY clue about what problems arise with complicated software in a large company (we have over 200 applications which spread across accounting, tax, HR, etc...). Most of them would not run on Linux, let alone an Apple.
Those 200 apps also make it VERY difficult when you are talking about outsourcing because you often get a different tech each time you talk to an outsourced support organization.
If you have a small company and they primarily use outsourced EVERYTHING (i.e. Payroll, HR, Accounting, etc...) and they only have email, Productivity Applications( WordProcessing, Spreadsheets, etc..) which are Enterprise applications, you MIGHT be able to outsource or bring computers from home, but I have seen so few of those that I doubt seriously if they would suffice for a 500 user company.
Wonder if the Eric actually knows of any companies like those that he talks hypothetically about.
Hypothetically Eric may be a genious, but not sure about that.
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that's right...
SonofaSailor 9th Sep 2010
@jkohut

when you outsource too many products, apps, programs, etc., and something goes wrong?...forget about it.

Because every vendor will blame the problem on another, it's not their responsiblity.

Proof?...City of LA employee has a problem, blames LA CIO...LA CIO blames Google...Google blames CSC...CSC blames LA Police Dept for throwing a wrench in their deployment, etc., etc., etc.

(Or, they can blame AT&T)
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RE: Is IT losing its relevance?
smtp4me@... 10th Sep 2010
I work for a VERY LARGE software company and I can tell you that we have outsourced, and have felt the pain.

What we have learned, is that you can only safely outsource "commodity" technologies, and lower level support. You still need highly skilled LOCAL resources to keep the lights on. And... there are hidden costs with outsourcing that the executives and bean counters often overlook, which in the end make it less cost effective overall.

As someone so eloquently stated above: all of us "irrelevant" IT workers will take an extended vacation, and see how long it takes for us to become relevant again!
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RE: Is IT losing its relevance?
anjorinjnr 11th Sep 2010
It's sad how people view IT these days, as something anybody will do. Isn't it these same users that have problem even fixing problems with microsoft word or outlook?

The truth is the IT landscape is changing and will eventually change. But i think there might just be some exaggeration in all these cloud, outsourcing gist. How many banks, and other companies are willing to move all their software and hardware to the internet ( or isn't that cloud)
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RE: Is IT losing its relevance?
richphx 16th Sep 2010
Is this guy on drugs or what?

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